Crypto exchange dYdX, widely recognized as one of the largest non-custodial cryptocurrency exchanges, has taken a critical step towards true decentralization. In an October 23 blog post, dYdX announced the release of the open source code for their new Cosmos-based network, marking a significant stride in their mission to decentralize their exchange operations.
dYdX has long grappled with criticisms of not being entirely decentralized due to its reliance on a centralized order book. However, the project’s dedicated team has persistently worked towards creating a new Cosmos-based dYdX chain that would remove the order book from the control of the development team altogether. This vision aims to transform dYdX into a truly decentralized exchange.
To bring their vision to life, dYdX launched a testnet of the new network on July 5. This testnet has served as a crucial playground for the project, allowing them to refine their protocols and address any potential issues. The successful launch of the testnet paved the way for the recent release of the open source code.
The newly published code encompasses various essential components, including the protocol, order book, and front-end, among others. By making this code open source, dYdX aims to encourage the involvement of global DeFi enthusiasts, who can now contribute to the infrastructure and drive the project forward.
Once the mainnet launch is complete, the dYdX development team has made a significant commitment; they will no longer be responsible for running any part of the infrastructure behind the new dYdX Chain. This transfer of control to the community represents a vital milestone in achieving true decentralization.
While an official launch date for the mainnet has yet to be announced, the dYdX Operations subDAO recently proposed a phased approach in an October 4 post. The proposed alpha phase will enable token holders to stake their tokens and earn staking rewards, but trading functionalities will not be available. This initial phase will primarily focus on establishing a robust foundation for the network.
Following the alpha phase, dYdX plans to proceed with the beta phase. This subsequent phase will facilitate trading and further testing, ensuring that the network is reliable and efficient. While the post refrains from providing specific dates for these phases, it encourages interested parties to refer to the dYdX Operations subDAO blog for updates and additional information.
dYdX’s commitment to decentralization is gradually propelling the exchange towards a new era. By sharing their open source code, dYdX invites collaboration, fosters community participation, and broadens the scope of possibilities for their network. With a seamless transition from testnet to mainnet on the horizon, dYdX relies on the collective efforts of the DeFi community to realize their vision of a truly decentralized exchange.